The Paris Bourse (+0.8% to 8,000pts) is climbing in the wake of Wall Street (the Nasdaq climbs +1.2% to set a new all-time record at 17,060pts), and is showing increasing serenity 24 hours ahead of the ECB meeting.
Although this meeting may be a non-event from the market's point of view, we believe that once policy easing has begun, European interest rates on the short end of the curve will fall", says François Rimeu, senior strategist at CMAM.

The CAC40, back above 8,000, was led by STMicroelectronic.000, is being driven by STMicro (+3.1% in the wake of ASML, which is up +7.5%) and the luxury goods sector, which is making a strong comeback with Hermès (+2.2%) and LVMH (+2.1%).
The Euro-Stoxx50 is back above 5,000Pts (+1.5% at 5,030) in the wake of the AEX (+1.4%), which sets a new all-time record at 918Pts (+30% since end-October 2023).

Wall Street resolutely opts for the upside, and the VIX falls back below 12.8, following the S&P500 to +0.6% (the Dow Jones returns to equilibrium), as expected after the publication of the ADP survey: the US private sector generated just 152,000 jobs last month, a number generally below economists' expectations (180.000), according to the monthly report by business services firm ADP (Automatic Data Processing).

'Job gains were slower in May due to a sharp decline in manufacturing.
Leisure and hospitality also posted weaker hiring', it explains in its report.

The scenario of an economic slowdown in the US is partly belied by the upturn in activity in the service sector, which returned to growth in May (+4.4pts to 53.8 last month from 49.4), according to the latest survey of purchasing managers by the Institute for Supply Management (ISM).

In April, the US sector suffered its first contraction after 15 months of uninterrupted growth, falling back below the fateful 50-point threshold, indicating a decline in activity.

The sub-index measuring production in services rose to 61.2 from 50.9, as did employment, which stood at 47.1 after 45.9 the previous month.
The new orders index also improved, rising to 54.1 from 52.2 in April.
This explains the relative indecision on US T-Bonds, with yields sometimes up +1.5pts (around 3pm), sometimes down -2.5pts (to 4.3080 around 5pm).
This morning, market participants had taken note of several statistics. In line with the trend observed since the start of the year, the HCOB composite PMI index for overall activity in the eurozone rose to 52.2 in May, from 51.7 in April, and thus reached its highest level for a year.

In France, on the other hand, the HCOB PMI composite index of overall activity fell for the second time since December 2023, to 48.9 in May from 50.5 in April, signalling a return to contraction after the weak growth recorded the previous month.
Bunds and OATs are easing a little more markedly, with -3.5 basis points to 2.5030 and 2.997 basis points respectively, while Italian BTPs are erasing -5 basis points to 3.815%.

Brent crude oil prices are back on the rise (+1%), after falling in recent days. The barrel is trading at $78 in London.

In company news, Orange announces a new strategic partnership with Silknet, Georgia's leading fixed and mobile network provider, as part of its Orange Alliance program, effective June 3.

TotalEnergies reports several important advances towards the FID (final investment decision) for the offshore block 58 development project in Suriname, with the decision expected in the fourth quarter of 2024 for production start-up in 2028.

Finally, Air Liquide announces that it will invest over $250 million in the construction of an industrial gas production site in the United States, to supply the new plant of one of the world's leading semiconductor manufacturers.


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